Existing law establishes the forestry assistance program, to be conducted by the Department of Forestry and Fire Protection, which is required to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and education assistance, as well as through applied research. Existing law creates the Timber Regulation and Forest Restoration Fund in the State Treasury and requires that specified revenues received from a lumber or engineered wood products assessment, less amounts deducted for refunds and reimbursements, be deposited in the fund and, upon appropriation by the Legislature, used for specified purposes, including for forest resources improvement grants and projects administered by department.

This bill would provide that assessments deposited into the fund, less amounts deducted for refunds and reimbursement, reimbursements, be used, upon appropriation by the Legislature, for forest resources improvement grants, loans, and projects.

Existing law authorizes the director of the department to enter into an agreement with an eligible landowner pursuant to which the landowner will undertake forest resource improvement work in return for an agreement by the director to share the cost of carrying out that work. Existing law authorizes the director to make various types of loans, including loans to cover all or part of the landowners cost for the work. Existing law requires these loans to be made for a term not exceeding 20 years and bearing interest at the prevailing rate.

This bill would instead authorize the director to enter into those agreements only with small nonindustrial landowners, as defined. The bill would delete the term and interest rate requirements relating to these loans and instead require the director to establish reasonable terms relating to the length of, and the interest rate for, the loans. The bill would also authorize require the director to provide the directors share of the costs described above in advance of any performed work if the eligible landowner agrees in writing to undertake the forest resource improvement work with the understanding that any funds provided for uncompleted work shall constitute a claim and lien upon the real property owned by the landowner, as provided. The bill would require any money recovered from the lien to be deposited into the fund.

Existing law establishes the forestry assistance program, to be conducted by the Department of Forestry and Fire Protection, which is required to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and education assistance, as well as through applied research. Existing law creates the Timber Regulation and Forest Restoration Fund in the State Treasury and requires that specified revenues received from a lumber or engineered wood products assessment, less amounts deducted for refunds and reimbursements, be deposited in the fund and, upon appropriation by the Legislature, used for specified purposes, including for forest resources improvement grants and projects administered by department.

This bill would provide that assessments deposited into the fund, less amounts deducted for refunds and reimbursement be, reimbursement, be used, upon appropriation by the Legislature, used for forest resources improvement grants, loans, and projects.

Existing law authorizes the director of the department to enter into agreements an agreement with an eligible landowners landowner pursuant to which the landowner will undertake forest resource improvement work in return for an agreement by the director to share the cost of carrying out that work. Existing law authorizes the director to make various types of loans, including loans to cover all or part of the landowners cost for the work. Existing law requires these loans to be made for a term not exceeding 20 years and bearing interest at the prevailing rate.

This bill would instead authorize the director to enter into those agreements with small nonindustrial landowners, as defined. The bill would delete certain terms relating to the loan the term and interest rate requirements relating to these loans and instead require the director to establish reasonable terms relating to the length of, and the interest rate for, this loan. the loans. The bill would also authorize the director to provide the directors share of the costs described above in advance of any performed work if the eligible landowner agrees in writing to undertake the forest resource improvement work with the understanding that any funds provided for uncompleted work shall constitute a claim and lien upon the real property owned by the landowner, as provided. The bill would require any money recovered from the lien to be deposited into the fund.

Existing law establishes the forestry assistance program, to be conducted by the Department of Forestry and Fire Protection, which is required to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and education assistance, as well as through applied research. Existing law creates the Timber Regulation and Forest Restoration Fund in the State Treasury and requires that specified revenues received from a lumber or engineered wood products assessment, less amounts deducted for refunds and reimbursements, be deposited in the fund and, upon appropriation by the Legislature, used for specified purposes, including for forest resources improvement grants and projects administered by department.

This bill would provide that assessments deposited into the fund, less amounts deducted for refunds and reimbursement be, upon appropriation by the Legislature, used for forest resources improvement grants, loans, and projects.

Existing law authorizes the director of the department to enter into agreements with eligible landowners pursuant to which the landowner will undertake forest resource improvement work in return for an agreement by the director to share the cost of carrying out that work. Existing law authorizes the director to make various types of loans, including loans to cover all or part of the landowners cost for the work. Existing law requires these loans to be made for a term not exceeding 20 years and bearing interest at the prevailing rate.

This bill would instead authorize the director to enter into those agreements with small nonindustrial landowners, as defined. The bill would delete certain terms relating to the loan and instead require the director to establish reasonable terms relating to the length of, and the interest rate for, this loan.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 362 (Wood) - Forestry assistance program: loans

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

1. AB 362 requires the California Department of Forestry (CalFIRE) to provide advances to landowners participating in the California Forest Improvement Program (CFIP).

Fiscal Impact:

Approximately $175,000 annually (special fund) to CalFIRE for staffing costs to administer the loans and establish and enforce funding and repayment terms.

Background:

The California Forest Improvement Program (CFIP).The CFIP provides financial, technical, and educational assistance to encourage forest resource improvements and otherwise facilitate good forest land management. The program is administered by the CalFIRE and provides up to 90% of the cost for eligible activities on forest lands from 20 to 5,000 acres. Eligible activities include management planning, site preparation, tree purchase and planting, timber stand improvement, fish and wildlife habitat improvement, and land conservation practices.

The CFIP has historically been funded by the California's Forest Resource Improvement Fund (FRIF). CAL FIRE may also receive funding from a variety of other State and Federal sources. In the 2015-16 fiscal year, CFIP provided 96 grants to treat 35,000 acres of forest land. CFIP in recent years has received funding from the Greenhouse Gas Reduction Fund, High Speed Rail environmental mitigation funds, and the fund (TRFRF) created by a consumer lumber assessment. The vast majority of TRFRF is spent on providing staff to review timber harvest plans. In fiscal year 2016-17, approximately $7.5 million—or roughly one-fifth of the TRFRF expenditures—was budgeted for local assistance grants for forest restoration. CFIP received $5 million of that funding and the administration is proposing another $5 million in this year’s budget.

Proposed Law: This bill:

2. Requires CalFIRE to provide advances to landowners of its cost share for work agreed to in an agreement with a landowner through the CFIP program involving an upgrade to the management, protection, and enhancement of his or her forestlands.
3. Requires a landowner to agree in writing to undertake the work that the advance was provided for, with the understanding that funds provided for any uncompleted work constitute a claim and lien upon the real property owned by the landowner.
4. Specifies that CalFIRE may make loans for forest resource improvement work to fulfill a part of a CFIP agreement that covers all or part of a smaller nonindustrial landowner share on a per acre formula that is secured by a deed of trust.
5. Authorizes the TRFRF to provide resources to CFIP for loans in addition to grants and projects.

Staff Comments:

Purpose of the bill. According to the author, many of the small nonindustrial forest landowners in California do not have the financial resources to consistently and effectively manage their land. Although the CFIP program allows CAL FIRE to pay up to 90% of certain forestry work, because it is a reimbursement program, it is still out of reach for many landowners. This bill allows funding in advance of the performance of the work.

-- END --

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Robert Hertzberg, Chair

2017 - 2018 Regular

Bill No: AB 362 Hearing Date: June 27, 2017

Subject: Forestry assistance program: loans

BACKGROUND AND EXISTING LAW

1. Establishes the California Forest Improvement Program (CFIP) administered by the California Department of Forestry (department), to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and educational assistance.
2. Requires that the purpose of CFIP is to work cooperatively with private landowners, particularly smaller nonindustrial landowners, to upgrade the management of their lands to improve both the productivity of land and the degree of protection and enhancement of the forest resource system as a whole.
3. Defines "smaller nonindustrial landowners" to mean owners of 5,000 acres or less of forest land.
4. Authorizes the department to enter into agreements to provide funds for up to 90% of the cost of forest resource improvement work a landowner has undertaken based on a per acre formula.
5. Authorizes the department to make loans for forest resource improvement work to cover all or part of a landowner's cost share payment. Any loan may not exceed 20 years and shall bear interest at the prevailing rate. Requires loans to be secured by a mortgage or deed of trust upon the parcel of land to which the forest improvement project applies. Allows the loan to be forgiven when the land was substantially damaged by fire or another natural cause and not damaged by the negligence or willful act of the landowner.
6. Establishes the Timber Regulation and Forest Restoration Fund (TRFRF) which receives funding from an authorized 1% assessment on lumber and engineered wood products sold at the retail level. Specifies that TRFRF may be used to provide resources to CFIP for grants and projects administered by the department.

PROPOSED LAW

1. Requires the department to provide advances to landowners of the department’s cost share for work agreed to in an agreement with a landowner through the CFIP program involving an upgrade to the management, protection, and enhancement of his or her forestlands.
2. Requires a landowner to agree in writing to undertake the work that the advance was provided for, with the understanding that funds provided for any uncompleted work constitute a claim and lien upon the real property owned by the landowner.
3. Specifies that the department may make loans for forest resource improvement work to fulfill a part of a CFIP agreement that covers all or part of a smaller nonindustrial landowner share on a per acre formula that is secured by a deed of trust.
4. Authorizes the TRFRF to provide resources to CFIP for loans in addition to grants and projects.

ARGUMENTS IN SUPPORT

According to the author, forests that are not consistently well managed can quickly become environmental hazards. When overgrown and untreated they can pose catastrophic fire risks, produce blockages in fish bearing streams, and exacerbate pest infestations.

Nearly 25% of California's lands are owned by individuals or families. The author points out that the timber harvest permitting process in the state adds a financial burden to some smaller landowners that may adversely affect their ability to consistently and effectively manage their land.

CFIP gives the department the authority to ease some of the financial burden for small nonindustrial timberland owners by entering into a cost-share agreement. CFIP allows the department to pay for up to 90% of certain forestry work. This program can be a boon to land owners who don't have the financial resources to care for their land the way they would like. Unfortunately because the cost-share program is a reimbursement program, CFIP is still out of reach for many of our most needy landowners.

ARGUMENTS IN OPPOSITION

None received.

COMMENTS

1. The purpose of the CFIP cost-share program is to encourage private and public investment in, and improved management of, California forest lands and resources on parcels of 5000 acres or less. In other words, these are generally “smaller” landowners, and not the larger industrial forest land owners. About one-half of the commercial timberland in the state is owned by such owners. As described on the department’s website, the focus is to ensure adequate high quality timber supplies, related employment and other economic benefits, and the protection, maintenance, and enhancement of a productive and stable forest resource system for the benefit of present and future generations. CFIP is designed to improve all forest resources, including fish and wildlife habitat, and soil and water quality. Cost-shared activities include management planning, site preparation, tree purchase and planting, timber stand improvement, fish and wildlife habitat improvement, and land conservation practices.

In the 2015-16 fiscal year, CFIP provided 96 grants to treat 35,000 acres of forest land. CFIP in recent years has received funding from the Greenhouse Gas Reduction Fund, High Speed Rail environmental mitigation funds, and the fund (TRFRF) created by a consumer lumber assessment. The vast majority of TRFRF is spent on providing staff to review timber harvest plans. In fiscal year 2016-17, approximately $7.5 million—or roughly one-fifth of the TRFRF expenditures—was budgeted for local assistance grants for forest restoration. CFIP received $5 million of that funding and the administration is proposing another $5 million in this year’s budget.

1. CFIP can provide up to 75%, and in certain cases up to 90% of the funding for agreed upon forest resource improvement work. However, the landowner must perform the work and then be reimbursed by the department. The landowner pays for whatever is not agreed upon to be reimbursed. Landowners can supply their own labor to account for a portion of the cost of the work. The Legislature, when establishing CFIP in 1978, declared:

Over one-half of privately owned, commercial forest land in the state is owned by nonindustrial landowners. Forest resources that can be provided by these lands will be increasingly important in the future. Yet the owners of these lands often lack forestry expertise economic incentive, or capital needed to make investments to increase present and future availability of forest resource benefits from their lands.

This is still true today. According to the University of California’s Cooperative Extension, 40% of California's forestland is owned by families, Native American tribes, or companies. Industrial timber companies own 5 million acres (14%). Nine million acres forests are owned by nonindustrial landowners with nearly 90% of these owners having less than 50 acres of forest land. Many of these small landowners do not have necessary money, equipment, or manpower to do the work upfront. This limits the applicant pool and may cause CFIP to inadvertently favor wealthier landowners. AB 362 requires the department to advance their cost-share portion of the funding for the work, and then it may loan the landowners the rest of the funding required to complete the work.

SUPPORT

California Licensed Foresters Association

Pacific Forest Trust

OPPOSITION

None Received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 362

Author:(Wood)

As Amended Ver:March 23, 2017

Majority vote

SUMMARY: Authorizes the Department of Forestry and Fire Protection (CAL FIRE) to provide advances and loans to landowners for work agreed to as part of the California Forest Improvement Program (CFIP) to upgrade the management, protection, and enhancement of their forestlands. Specifically, this bill:

1. Authorizes CAL FIRE to provide all of the funding it has agreed to provide for forest resources improvement work in advance of the work being performed;
2. Requires a landowner to agree in writing to undertake the work that the advance was provided for, with the understanding that funds provided for any uncompleted work constitute a claim and lien upon the real property owned by the landowner;
3. Specifies that CAL FIRE may make loans for forest resource improvement work to cover all or part of a smaller nonindustrial landowner share. Deletes the requirement that any loan may not exceed 20 years and shall bear interest at the prevailing rate, and instead requires CAL FIRE to establish reasonable terms relating to the length of the loan and the interest rate for the loan; and,
4. Authorizes the Timber Regulation and Forest Restoration Fund (TRFRF) to provide resources to CFIP for loans in addition to grants and projects.

EXISTING LAW:

1. Establishes CFIP administered by the CAL FIRE, to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and educational assistance.
2. Requires the purpose of CFIP to be working cooperatively with private landowners, particularly smaller nonindustrial landowners, to upgrade the management of their lands to improve both the productivity of land and the degree of protection and enhancement of the forest resource system as a whole.
3. Defines "smaller nonindustrial landowners" to mean owners of 5,000 acres or less of forest land.
4. Authorizes CAL FIRE to enter into agreements to provide funds for up to 90% of the cost of forest resource improvement work a landowner has undertaken.
5. Authorizes CAL FIRE to make loans for forest resource improvement work to cover all or part of a landowner's cost share payment. Any loan may not exceed 20 years and shall bear interest at the prevailing rate. Requires loans to be secured by a mortgage or deed of trust upon the parcel of land to which the forest improvement project applies.
6. Establishes the TRFRF which receives funding from an authorized 1% assessment on lumber and engineered wood products sold at the retail level. Specifies that TRFRF may be used to provide resources to CFIP for grants and projects administered by CAL FIRE.

FISCAL EFFECT: According to the Assembly Appropriations Committee, increased annual CAL FIRE costs of approximately $175,000 to administer the loans and establish and enforce funding and repayment terms (special fund).

COMMENTS:

1. Author's statement:

Forests that are not consistently well managed can quickly become environmental hazards. When overgrown and untreated they can pose catastrophic fire risks, produce blockages in fish bearing streams, and exacerbate pest infestations.

Nearly 25% of California's lands are owned by individuals or families. California law requires extensive surveys and studies to be conducted, and environmental standards to be met, before forest projects are undertaken. Many of the small nonindustrial forest land owners in California do not have the financial resources to consistently and effectively manage their land under these requirements.

CFIP gives the Director of CAL FIRE the authority to ease some of the financial burden for small nonindustrial timberland owners by entering into a cost-share agreement. CFIP allows CAL FIRE to pay for up to 90% of certain forestry work. This program can be a boon to land owners who don't have the financial resources to care for their land the way they would like. Unfortunately because the cost-share program is a reimbursement program, CFIP is still out of reach for many of our most needy landowners.

1. CFIP. The purpose of the CFIP program is to encourage private and public investment in, and improved management of, California forest lands and resources. This focus is to ensure adequate high quality timber supplies, related employment and other economic benefits, and the protection, maintenance, and enhancement of a productive and stable forest resource system for the benefit of present and future generations. CFIP is designed to improve all forest resources, including fish and wildlife habitat, and soil and water quality. Cost-share assistance is provided to private and public landowners containing 20 to 5,000 acres of forest land. Cost-shared activities include management planning, site preparation, tree purchase and planting, timber stand improvement, fish and wildlife habitat improvement, and land conservation practices.

In the 2015-16 fiscal year, CFIP provided 96 grants to treat 35,000 acres of forest land. CFIP in recent years has received funding from the Greenhouse Gas Reduction Fund, High Speed Rail environmental mitigation funds, and TRFRF. AB 1492 (Budget Committee), Chapter 289, Statutes of 2012, created TRFRF and the assessment that provides revenue for the fund. The vast majority of TRFRF is spent on providing staff to review timber harvest plans. In fiscal year 2016-17, approximately $7.5 million — or roughly one-fifth of the TRFRF expenditures — was budgeted for local assistance grants for forest restoration. CFIP received $5 million of that funding and the administration is proposing another $5 million in this year's budget.

1. New tools. CAL FIRE's CFIP can provide up to 75%, and in certain cases up to 90% of the funding for agreed upon forest resource improvement work. However, the landowner must perform the work and then be reimbursed by CAL FIRE. The landowner pays for whatever is not agreed upon to be reimbursed. Landowners can supply their own labor to account for a portion of the cost of the work. The Legislature, when establishing CFIP in 1978, declared:

Over one-half of privately owned, commercial forest land in the state is owned by nonindustrial landowners. Forest resources that can be provided by these lands will be increasingly important in the future. Yet the owners of these lands often lack forestry expertise economic incentive, or capital needed to make investments to increase present and future availability of forest resource benefits from their lands.

This is still true today. According to the University of California's Cooperative Extension, 40% of California's forestland is owned by families, Native American tribes, or companies. Industrial timber companies own 5 million acres (14%). Nine million acres forests are owned by nonindustrial landowners with nearly 90% of these owners having less than 50 acres of forest land. Many of these small landowners do not have necessary money, equipment, or manpower to do the work upfront. This limits the applicant pool and may cause CFIP to favor wealthier landowners. AB 362 provides CAL FIRE the authority to advance their portion of the funding for the work, and loan the landowners the rest of the funding required to complete the work. This authority could be used to assist small landowners. However, there is no requirement in this bill that CAL FIRE change how it administers CFIP. As the bill moves forward, the author may wish to consider whether the bill should require CAL FIRE to use these new tools under certain circumstances.

Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0000556

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 362

Author:(Wood) – As Amended Ver:March 23, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes CAL FIRE to provide advances and loans to landowners for work agreed upon as part of the California Forest Improvement Program (CFIP) to upgrade the management, protection, and enhancement of their forestlands. Specifically, this bill:

1. Authorizes the Director of CAL FIRE to provide funding for forest resources improvement work in advance.
2. Requires a landowner to agree in writing to undertake the work for which the advance was provided, with the understanding that funds associated with any uncompleted work constitute a claim and lien on the landowner's property.
3. Authorizes the Director of CAL FIRE to provide loans for forest resource improvement work to cover all or part of a smaller nonindustrial landowner share. Deletes the requirement that any loan may not exceed 20 years and shall bear interest at the prevailing rate, and instead requires the Director to establish reasonable terms relating to the length and interest rate of the loan.
4. Authorizes the Timber Regulation and Forest Restoration Fund (TRFRF) to provide resources to CFIP for loans in addition to grants and projects.

FISCAL EFFECT:

Increased annual CAL FIRE costs of approximately $175,000 to administer the loans and establish and enforce funding and repayment terms (special fund).

COMMENTS:

1. Purpose. According to the author, many of the small nonindustrial forest landowners in California do not have the financial resources to consistently and effectively manage their land. Although the CFIP program allows CAL FIRE to pay up to 90% of certain forestry work, because it is a reimbursement program, it is still out of reach for many landowners. This bill allows funding in advance of the performance of the work.
2. Background. The purpose of the California Forest Improvement Program (CFIP) program is to encourage private and public investment in, and improved management of, California forest lands and resources.

The program scope includes the improvement of all forest resources including fish and wildlife habitat, and soil and water quality. Cost-share assistance is provided to private and public landowners with 20 to 5,000 acres of forest land. Cost-shared activities include management planning, site preparation, tree purchase and planting, timber stand improvement, fish and wildlife habitat improvement, and land conservation practices.

The source of funds for CFIP projects historically has come from California's Forest Resource Improvement Fund (FRIF). CAL FIRE may also receive funding from a variety of other State and Federal sources. Different funding sources may have different requirements or additional application procedures.

CFIP was recently awarded a two-year appropriation from TRFRF and the funds are currently being encumbered for cost share contracts. The High Speed Rail Authority has granted funds to CAL FIRE for the purpose of Assisting the Authority in meeting some of its environmental requirements to offset greenhouse gas emissions resulting from the construction of the rail project. Funds will be used for tree planting services implemented as cost sharing agreements with private non-industrial timberland owners through the CFIP program.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 3, 2017

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Cristina Garcia, Chair

ABPCA Bill Id:AB 362 (

Author:Wood) – As Amended Ver:March 23, 2017

SUBJECT: Forestry assistance program: loans

SUMMARY: Authorizes the Department of Forestry and Fire Protection (CAL FIRE) to provide advances and loans to landowners for work agreed to as part of the California Forest Improvement Program (CFIP) to upgrade the management, protection, and enhancement of their forestlands.

EXISTING LAW:

1. Establishes CFIP administered by the CAL FIRE, to encourage forest resource improvements and otherwise facilitate good forest land management through a program of financial, technical, and educational assistance.
2. Requires the purpose of CFIP to be working cooperatively with private landowners, particularly smaller nonindustrial landowners, to upgrade the management of their lands to improve both the productivity of land and the degree of protection and enhancement of the forest resource system as a whole.
3. Defines “smaller nonindustrial landowners” to mean owners of 5,000 acres or less of forest land.
4. Authorizes CAL FIRE to enter into agreements to provide funds for up to 90% of the cost of forest resource improvement work a landowner has undertaken.
5. Authorizes CAL FIRE to make loans for forest resource improvement work to cover all or part of a landowner’s cost share payment. Any loan may not exceed 20 years and shall bear interest at the prevailing rate. Requires loans to be secured by a mortgage or deed of trust upon the parcel of land to which the forest improvement project applies.
6. Establishes the Timber Regulation and Forest Restoration Fund (TRFRF) which receives funding from an authorized 1% assessment on lumber and engineered wood products sold at the retail level. Specifies that TRFRF may be used to provide resources to CFIP for grants and projects administered by CAL FIRE.

THIS BILL:

1. Authorizes CAL FIRE to provide all of the funding it has agreed to provide for forest resources improvement work in advance of the work being performed.
2. Requires a landowner to agree in writing to undertake the work that the advance was provided for, with the understanding that funds provided for any uncompleted work constitute a claim and lien upon the real property owned by the landowner.
3. Specifies that CAL FIRE may make loans for forest resource improvement work to cover all or part of a smaller nonindustrial landowner share. Deletes the requirement that any loan may not exceed 20 years and shall bear interest at the prevailing rate, and instead requires CAL FIRE to establish reasonable terms relating to the length of the loan and the interest rate for the loan.
4. Authorizes TRFRF to provide resources to CFIP for loans in addition to grants and projects.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

Forests that are not consistently well managed can quickly become environmental hazards. When overgrown and untreated they can pose catastrophic fire risks, produce blockages in fish bearing streams, and exacerbate pest infestations.

Nearly 25% of California’s lands are owned by individuals or families. California law requires extensive surveys and studies to be conducted, and environmental standards to be met, before forest projects are undertaken. Many of the small nonindustrial forest land owners in California do not have the financial resources to consistently and effectively manage their land under these requirements.

CFIP gives the Director of CAL FIRE the authority to ease some of the financial burden for small nonindustrial timberland owners by entering into a cost-share agreement. CFIP allows CAL FIRE to pay for up to 90% of certain forestry work. This program can be a boon to land owners who don’t have the financial resources to care for their land the way they would like. Unfortunately because the cost-share program is a reimbursement program, CFIP is still out of reach for many of our most needy landowners.

1. CFIP. The purpose of the CFIP program is to encourage private and public investment in, and improved management of, California forest lands and resources. This focus is to ensure adequate high quality timber supplies, related employment and other economic benefits, and the protection, maintenance, and enhancement of a productive and stable forest resource system for the benefit of present and future generations. CFIP is designed to improve all forest resources, including fish and wildlife habitat, and soil and water quality. Cost-share assistance is provided to private and public landowners containing 20 to 5,000 acres of forest land. Cost-shared activities include management planning, site preparation, tree purchase and planting, timber stand improvement, fish and wildlife habitat improvement, and land conservation practices.

In the 2015-16 fiscal year, CFIP provided 96 grants to treat 35,000 acres of forest land. CFIP in recent years has received funding from the Greenhouse Gas Reduction Fund, High Speed Rail environmental mitigation funds, and TRFRF. AB 1492 (Blumenfield), Chapter 289, Statutes of 2012, created TRFRF and the assessment that provides revenue for the fund. The vast majority of TRFRF is spent on providing staff to review timber harvest plans. In fiscal year 2016-17, approximately $7.5 million—or roughly one-fifth of the TRFRF expenditures—was budgeted for local assistance grants for forest restoration. CFIP received $5 million of that funding and the administration is proposing another $5 million in this year’s budget.

1. New tools. CAL FIRE’s CFIP can provide up to 75%, and in certain cases up to 90% of the funding for agreed upon forest resource improvement work. However, the landowner must perform the work and then be reimbursed by CAL FIRE. The landowner pays for whatever is not agreed upon to be reimbursed. Landowners can supply their own labor to account for a portion of the cost of the work. The Legislature, when establishing CFIP in 1978, declared:

Over one-half of privately owned, commercial forest land in the state is owned by nonindustrial landowners. Forest resources that can be provided by these lands will be increasingly important in the future. Yet the owners of these lands often lack forestry expertise economic incentive, or capital needed to make investments to increase present and future availability of forest resource benefits from their lands.

This is still true today. According to the University of California’s Cooperative Extension, 40% of California's forestland is owned by families, Native American tribes, or companies. Industrial timber companies own 5 million acres (14%). Nine million acres forests are owned by nonindustrial landowners with nearly 90% of these owners having less than 50 acres of forest land. Many of these small landowners do not have necessary money, equipment, or manpower to do the work upfront. This limits the applicant pool and may cause CFIP to favor wealthier landowners. AB 362 provides CAL FIRE the authority to advance their portion of the funding for the work, and loan the landowners the rest of the funding required to complete the work. This authority could be used to assist small landowners. However, there is no requirement in this bill that CAL FIRE change how it administers CFIP. As the bill moves forward, the author may wish to consider whether the bill should require CAL FIRE to use these new tools under certain circumstances.

1. Related legislation:

AB 425 (Caballero) expands the Forest Fire Prevention Pilot Project to allow the construction or reconstruction of temporary roads on slopes of 40% or less. This bill is scheduled to be heard April 17 in this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Licensed Foresters Association
Pacific Forest Trust

Opposition

None on file

Analysis Prepared by: Michael Jarred / NAT. RES. /